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Depleting assets by
waiting too long to begin asset protection planning.
-
Thinking that it is too
late to begin the planning process.
-
Believing that Medicare
pays for long term nursing home care.
-
Failing to preserve a
reserve fund to pay for care not provided by Medicaid.
-
Relying on advice from
someone who is not an expert in the Florida Medicaid program.
-
Failing to get a
durable power of attorney signed before a person is incompetent.
-
Neglecting the
possibility that the well spouse may die before the sick spouse.
-
Skipping the fact that
both spouses may need nursing home care.
-
Failing to take
advantage of spousal protection regulations.
-
Transferring assets
without understanding the Florida Department of Children and Families
(DCF) transfer rules and penalties.
-
Confusing the look back
period and the transfer disqualification period.
-
Causing an extension of
the transfer disqualification period by applying too soon.
-
Transferring the home
directly to the children without understanding the homestead protection
laws in Florida.
-
Ignoring exempt
transfers that do not result in a period of disqualification.
-
Failing to disclose all
transfers made in the 36 months (increasing 60 months) prior to the Medicaid application.
-
Confusing the Internal
Revenue Service $12,000 yearly gift tax exclusion with the Department of
Children and Families (DCF) rules concerning disqualification penalties
caused by the transfer of assets.
-
Failing to consider the
tax consequences during the planning process.
-
Thinking that assets in
any type of trust will not be counted in the available asset total.
-
Lacking knowledge about
how annuities can be used to gain Medicaid qualification quickly.
-
Missing the use of
exempt assets in the planning process.
-
Confusing gross income
with net income, the amount actually received after deductions for such
things as income taxes, health insurance premiums, etc.
-
Applying for Medicaid
for a person whose gross income is greater than Florida's income cap and
who does not have a Qualified Income Trust.
-
Failing to fund the
Qualified Income Trust each month of Medicaid benefits.
-
Omitting any asset or
source of income in the Medicaid application.
-
Failing to keep
accurate records for submission to DCF.
-
Neglecting to notify
DCF of any changes in assets or income after approval.
Common Mistakes in Florida
Medicaid Asset Protection Planning